Sean Hannity Becomes Another High-Profile Tax Refugee

The TV host can save as much as $1 million a year just by escaping New York's tax regime. View Enlarged Image

Now we can add Sean Hannity to the growing list of celebrities to abandon their New York residencies in favor of states with better economic climates.

The popular TV and radio host has long been a New York resident with second and third homes in both Florida and Texas, two of the brightest stars in our nation's economic constellation.

But on his primetime Fox News show, he recently told Florida Sen. Marco Rubio: "You're soon going to be my senator." He will split his time between a home in Naples, Fla., and a small ranch in Texas and end his New York residency, which means he'll no longer be taxed by the Empire State.

Why this move after so many years as a New Yorker?

Well, in January of this year, New York Gov. Andrew Cuomo created a firestorm when he contended that conservatives have "no place" in his state. In response, both Florida Gov. Rick Scott and Texas Gov. Rick Perry invited Hannity to consider a move to their states — invitations Hannity has gladly accepted.

It's quite obvious why Hannity would not want to live in a state where his party is vilified by the governor. Yet there are many compelling financial reasons that favor Florida and Texas.

For one, neither Florida nor Texas levies a personal income tax — quite appealing considering that New York's marginal income-tax rate for top earners like Hannity is over 13%. For New Yorkers making over $1 million a year, a move to Florida and Texas will let these top earners take home at least $130,000 more after taxes.

Hannity no doubt pulls down an income that will save as much as $1 million a year by saying so long to New York.

He isn't alone in choosing sunny economic climates over New York's shakedown tax system. Between 1992 and 2011 (according to data from the Internal Revenue Service), New York lost $71.36 billion in net adjusted gross income (AGI). By comparison, Texas gained $27.34 billion, while Florida gained a whopping $100.53 billion.

With population growth outpacing New York's nearly 3-to-1, Florida has now passed the Empire State as the nation's third-most populous.

The annual state report by the nonpartisan Tax Foundation confirms that Hannity is making a wise financial decision. Its 2014 State Business Tax Climate Index places New York dead last on the list as a result of high income, corporate, sales and property taxes.

The TV host can save as much as $1 million a year just by escaping New York's tax regime. View Enlarged Image

Now we can add Sean Hannity to the growing list of celebrities to abandon their New York residencies in favor of states with better economic climates.

The popular TV and radio host has long been a New York resident with second and third homes in both Florida and Texas, two of the brightest stars in our nation's economic constellation.

But on his primetime Fox News show, he recently told Florida Sen. Marco Rubio: "You're soon going to be my senator." He will split his time between a home in Naples, Fla., and a small ranch in Texas and end his New York residency, which means he'll no longer be taxed by the Empire State.

Why this move after so many years as a New Yorker?

Well, in January of this year, New York Gov. Andrew Cuomo created a firestorm when he contended that conservatives have "no place" in his state. In response, both Florida Gov. Rick Scott and Texas Gov. Rick Perry invited Hannity to consider a move to their states — invitations Hannity has gladly accepted.

It's quite obvious why Hannity would not want to live in a state where his party is vilified by the governor. Yet there are many compelling financial reasons that favor Florida and Texas.

For one, neither Florida nor Texas levies a personal income tax — quite appealing considering that New York's marginal income-tax rate for top earners like Hannity is over 13%. For New Yorkers making over $1 million a year, a move to Florida and Texas will let these top earners take home at least $130,000 more after taxes.

Hannity no doubt pulls down an income that will save as much as $1 million a year by saying so long to New York.

He isn't alone in choosing sunny economic climates over New York's shakedown tax system. Between 1992 and 2011 (according to data from the Internal Revenue Service), New York lost $71.36 billion in net adjusted gross income (AGI). By comparison, Texas gained $27.34 billion, while Florida gained a whopping $100.53 billion.

With population growth outpacing New York's nearly 3-to-1, Florida has now passed the Empire State as the nation's third-most populous.

The annual state report by the nonpartisan Tax Foundation confirms that Hannity is making a wise financial decision. Its 2014 State Business Tax Climate Index places New York dead last on the list as a result of high income, corporate, sales and property taxes.

New York puts a stranglehold on those who wish to start businesses, save money and make smart investments. On the flip side, the Tax Foundation says Texas and Florida are 11th- and 5th-best states in which to do business.

The monetary advantages to a dual Texas and Florida residency go beyond one's tax savings and overall earning potential. In researching our new book, "An Inquiry into the Nature and Causes of the Wealth of States" (co-authored with Art Laffer and Rex Sinquefield), we found that Texas and Florida rank high across several indices — including business-friendly regulations and low debt.

Both are formidable job creators with low unemployment rates. Florida added 190,000 jobs last year and unemployment now averages 6.2%. Texas created 252,000 jobs, and unemployment is now just 5.2%.

Little wonder, then, why Hannity and others want to be in pro-growth states. Several decades ago, New York was an economic dynamo, which is how it got rich. But it has recently regulated and legislated its way into an economic decline that has seen millions of Americans leave.

Its economic growth rate is so low that by some estimates the state is still in a recession. This is the same progressive economic formula that President Obama wants to impose on the entire nation.

 Moore is chief economist at the Heritage Foundation and a member of IBD's Brain Trust.

 Brown is CEO of Pelopidas LLC, a public affairs and issue advocacy firm.

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